Knowledge Centre

Key Statistics

$ Billion*

Total Defence Budget (FY 2019-20)

$ Billion*

Capital Expenditure Allocation (FY 2019-20)

$ Billion*

Revenue Expenditure Allocation (FY 2019-20)


Growth in Expenditure in 2019-20 over 2018-19

Sector Snapshot

India maintains the second largest standing armed forces in the world by size, is the eighth largest spender on defence and the second largest importer of defence equipment (SIPRI, March 2019). Considering the size of Indian Defence Forces, and their modernisation needs, India has maintained a consistent defence spending pattern over the last decade to build defence capability, as also its defence industrial base.

8 – 10 % CAGR

Steady growth


Micro, Small and Medium Enterprises (MSMEs)


FDI permitted with Government approval

Defence Industrial Licences issued till end of FY 2018-19

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Latest News

  • Russia, India to sign first contract with third state for BrahMos cruise missile in spring

    The first contract to supply Russian-Indian BrahMos cruise missiles to a third nation is planned to be signed in spring, said Praveen Pathak, the chief general manager for marketing and export of the Russian-Indian joint venture BrahMos Aerospace.

  • Work on Kaveri ‘dry’ engine progressing well

    India has started work on the development of a Kaveri derivative engine (“dry” engine) without afterburner for powering Indian Unmanned Combat Aircraft in near future, ground testing of the first pre-prototype of the same has been carried out said people with knowledge of the program to and the aim is to develop a working prototype in next 2-3 years so that it can be used for flight certification before it can be used on production variant of the upcoming 15 tonnes Stealth UCAV program.

  • MoD expert rejects foreign helicopter, HAL says Dhruv is suitable

    With the ministry of defence (MoD) poised to sanction on Friday a Rs 21,738 crore project to build 111 naval utility helicopters (NUH) in an Indian private sector firm, an MoD expert has suggested the project be scrapped.

  • BrahMos with Su-30s to boost firepower to combat Chinese threat in Indian Ocean Region

    The Indian Air Force (IAF) is all set enhance its strike capabilities in the Indian Ocean Region keeping an eye on the increasing Chinese presence to augment the Indian Navy’s strength by inducting Sukhoi fighter jets armed with lethal BrahMos missile in the newly set up squadron based in Thanjavur, Tamil Nadu.The new squadron will initially have five to six fighter jets but gradually it will operate with full strength.

  • France likely to switch offer to Rafale F4 for India

    The French Ministry of Defence’s DGA (Direction Générale de l’Armement) and Dassault Aviation are likely to offer Rafale in F4 standard to the upcoming Request for Proposal (RFP) which India will be sending for procurement of 114 fighter jets later this year.

  • L&T delivers over half of K9 Vajra-T SPHs to Indian Army ahead of schedule

    India’s private-sector defence contractor Larsen & Toubro (L&T) has delivered ahead of schedule more than half of the 100 K9 Vajra-T 155 mm/52 cal tracked self-propelled howitzers (SPHs) ordered by the Indian Army (IA).The company

  • BAE Systems collaborates with Renishaw

    We have signed an agreement to work with Renishaw to work together on the development of additive manufacturing capability for the defence and aerospace sector, designed to help improve performance, reduce costs and speed up manufacturing processes on combat aircraft of the future.The Memorandum of Understanding (MoU) lays the framework for us to bring together world-leading expertise in additive manufacturing (AM, also known as 3D printing) to maximise the application of this novel emerging manufacturing technique.

  • Indian Coast Guard In Talks With Dot For Satellite Bandwidth; Eyes 200 Ships, 100 Aircraft By 2025

    The Indian Coast Guard - the fourth largest coastal security agency in the world - is moving ahead with its Vision 2025 of having a fleet of about 200 ships and 100 aircraft in order

  • MoD to decide the fate of Project 75 (I) based on the Strategic Partnership Model

    The Project-75(I) is one of the most important and strategically significant naval programmes being undertaken by the Ministry of Defence (MoD) in the new decade. It is in line with the government’s Strategic Partnership (SP) Model and has broad-based the competition which is fair in a high-value project.

  • USD 26 bn defence production turnover target by 2025: Rajnath

    Defence Minister Rajnath Singh on Thursday said the government has set a target of achieving a turnover of USD 26 billionby 2025 in defence production as India cannot remain dependent on arms import forever. The government has taken several steps to support the private sector to boost indigenous defence manufacturing, Singh said after flagging off the 51st K-9 Vajra-T gun at the Larsen and Toubro’s (L&T) Armoured Systems Complex at Hazira here in Gujarat.“India cannot remain dependent on arms import.

  • Rajnath Singh to inaugurate induction of Su-30 fighter squadron

    Union Defence Minister Rajnath Singh would inaugurate the induction ceremony of SU-30 fighter squadron at the Air Force Station in Thanjavur in Tamil Nadu, Air Marshal Amit Tiwari said on Wednesday.

  • Navy’s 4 under-construction destroyers to get lethal weapons, sensors package

    The Cabinet Committee on Security has cleared a deadly weapons and sensors package for the four guided-missile destroyers under construction at Mazagon Docks in Mumbai, which will take the overall project cost of the four stealth warships to around Rs 35,800 crore.

  • Maruti Gypsy Production Begins Again In India Only For Defence Orders

    Indian Army ended the contract with Maruti Suzuki for the supply of new cars to choose Tata Safari Storme previously. Army has now placed fresh orders for the Gypsy Early last year, Maruti Suzuki India Ltd (MSIL), the largest-selling carmaker in the country, announced the discontinuation of its aged but highly capable Gypsy mini SUV in the local car market.The much-revered off-roader was discontinued from 1 April 2019 due to the SUV’s inability to meet the updated safety regulations.

  • Captain appointed for the IAC-1, efforts on to put it in water by 2021

    Captain appointed for the IAC-1, efforts on to put it in water by 2021 For projecting the country’s sea-borne airpower requirements, work on Indigenous Aircraft Carrier (IAC)-1 is moving at a fast pace and it will be going in for basin trials in the next couple of months.

  • DARPA Awards Lockheed Martin Hypersonic OpFires Phase 3 Contract

    The Defense Advanced Research Projects Agency (DARPA) awarded Lockheed Martin (NYSE: LMT) a $31.9 million contract for the Operational Fires (OpFires) Phase 3 Weapon System Integration program. OpFires seeks to develop and demonstrate an innovative ground-launched system to enable a hypersonic boost glide missile system to penetrate modern enemy air defenses and rapidly engage time-sensitive targets.Lockheed Martin, DARPA and the U.S.

  • Indian Navy, Ministry of Defence in a tussle over biggest submarine project

    A tussle has erupted over the biggest ‘Make in India’ project after the navy refrained from going ahead with a joint public-private bid while the defence ministry has emphasised that such teaming arrangements should be considered, as per procurement guidelines.

  • Indian Navy plans 24 submarines to strengthen fleet

    To strengthen its underwater fleet, the Indian Navy plans to build 24 submarines, including six nuclear attack submarines, a parliamentary panel was told. The Navy also told the panel that Medium Refit Life Certification (MRLC) of submarine Sindhuraj has been held up since the Russian side has not been able to submit bank guarantees and integrity pact due to sanctions imposed by the US.

  • First Contract To Sell BrahMos Cruise Missiles Expected By May 2020

    The first contract for the supply of Russian-Indian supersonic BrahMos cruise missiles to a third country (rumoured to be the Philippines) is planned to be signed during April-May 2020This was reported to the Media by the chief general manager of marketing and export company BrahMos Aerospace Pravin Pathak.“We hope that we will have the first order in 2020.

  • Navy, Ministry of Defence in a tussle over biggest submarine project

    NEW DELHI: A tussle has erupted over the biggest ‘Make in India’ project after the navy refrained from going ahead with a joint public-private bid while the defence ministry has emphasised that such teaming arrangements should be considered, as per procurement guidelines.

  • IAF announces induction of Astra, its most potent air-to-air missile

    Integration of indigenous BVR missile with Su-30MKI neutralises Pakistan's advantage with 110 km rangeThe Astra Beyond Visual Range (BVR) being fired from an IAF Su-30MKI fighterThe Indian Air Force (IAF) on January 13 announced the

Industry Voice

Customer Testimonails
Mr. Baba N Kalyani Immediate Past President, SIDM Chairman & Managing Director Bharat Forge Ltd

Make in India is a priority, and defence is a focus sector. The role for SIDM in this context is cut out; it is to focus on indigenisation, R&D, connecting industry, academia and research institutions, in addition to facilitating participation of small and medium scale industries in defence production.

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Customer Testimonails
Mr. Jayant D. Patil President, SIDM and Member of Board & Whole - time Director (Defence, L&T-NxT)

SIDM has been created to act as the single point of contact between the industry and the government. SIDM endeavours to work closely with the government on policy related issues, collaborate with experts from the industry, academia, R&D institutions, and through this, bridge the gap between the armed forces and the industry. SIDM also provides thought leadership, facilitates dialogue, convergences and consensus to resolve policy related issues and aid the flagship Make in India campaign.

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